Health Reimbursement Arrangement
A Health Reimbursement Arrangement (HRA) offered by your employer through Independent Health gives you more control over health care purchase decisions by:
- Helping to pay for eligible expenses
- Giving you online information and tools that help you monitor your account to take advantage of your HRA dollars
- Providing the convenience and flexibility of the Innovations Visa® debit card for purchases (if applicable) – which means no extra paperwork
How It Works
Although HRA plan features vary among employers, here are the basic elements:
- Your employer establishes an HRA account that you can use to help pay for any covered expenses during the plan year.
- HRAs are employer-funded only. You are not able to contribute to an HRA.
- Your employer establishes what expenses are covered under your HRA.
How might an HRA work for you?
See the following example:
Your company provides you with a Health Reimbursement Arrangement that includes a $1,000 employer-contributed fund, which you may use towards your $1,000 medical deductible only.
Your medical deductible: $1,000
| |
Using your HRA |
Non-Eligible Expenses |
| Your initial fund balance contributed by your employer |
$1,000 |
|
| Physician’s office - sick visit |
$150 |
|
| Emergency room visit |
$700 |
|
| Prescription copays |
|
$250 |
| Dentist’s office - cleaning |
|
$200 |
| Your remaining deductible |
$150 |
|